How to Buy Land in the Metaverse
There has been a boom in demand for virtual spaces in the metaverse. Earlier in the year, a Metaverse enthusiast named P-Ape reportedly spent $450,000 to become a next-door neighbour to rap legend - Snoop Dogg in the Snoopverse.
This interest in virtual real estate will only keep growing. According to this new report, the metaverse market share is expected to surpass $50b by 2026.
If this prospect excites you and you are considering an investment in the metaverse, please do your own research (DYOR) and speak with a trusted financial advisor. We are not financial advisors, and this article is solely to educate you.
With that disclaimer out of the way, we can confirm that purchasing land in the metaverse is quite easy, and by the end of this article, we will take you through a step-by-step process on how to become a virtual land owner, but first, let’s explain what a metaverse land means.
What is a metaverse land?
Metaverse land is a plot of digital space in the metaverse. These virtual spaces are non-fungible tokens (NFT). They can be viewed and explored via an immersive 3D experience. Metaverse lands are created by companies or metaverse projects that divide their maps into smaller spaces and sell them in single or multiple land offerings. The most popular metaverse projects include Decentraland, Sandbox, Illuvium, Axie Infinity, Blocktopia, Africarare, and many others.
What can you do with a virtual land?
Some investors simply buy lands in the metaverse with the hopes of flipping them for a profit, but there are other use cases for virtual land spaces, and they include;
Rent/Lease: When you purchase a virtual land in the metaverse, it becomes yours, and you can do with it as you wish, including renting or leasing the land to earn an income, just as you would in the actual world.
Business: Lands in the metaverse can be used to set up virtual businesses. This is evident in the ongoing race by big brands to enter and establish their presence. In 2021, the African telecoms giant, MTN, purchased 144 plots of land in Africarare metaverse. Companies like Starbucks, Coca-cola, Nike, Gucci, Burberry, and many others have already made a headstart in the metaverse.
Events and Parties: As in the real world, you can use your virtual land as a venue to host events, parties and other exciting digital experiences that you charge people to attend.
Home: You can build and set up a home for your digital avatar on your virtual land in the metaverse. The possible use cases of virtual lands are endless.
Where and how can you buy land in the metaverse?
Buying a piece of digital land is similar to buying an NFT; although the steps may vary slightly depending on the platform, all you need to get started is an NFT wallet and some cryptocurrencies. So, let’s go virtual land shopping.
Step 1: Choose a metaverse platform
Step 2: Set up your wallet
Create a wallet with some cryptocurrencies - usually the native currency of your selected platform. Be sure to confirm that the wallet supports the NFT lands blockchain. The Metamask wallet is compatible.
Step 3: Connect your wallet to the Decentraland marketplace
On Decentraland’s marketplace, you can see the map and the lands spaces, but before you can buy or bid, you need to connect your wallet to the marketplace
From the listed wallets, select Metamask, and click on Next.
Step 4: Click on land to see the map
Click to select any box on the map to view the available land details
Step 5: Click on the buy button
You can buy the land on Decentraland using their native MANA currency or ETH. If you do not have enough MANA, you can buy some from any exchange or Uniswap.
Step 6: Confirm your purchase
After clicking on the buy button, you will be asked to confirm your purchase. When you do, the transaction will be processed in a few seconds.
Step 6: Transfer to a secure wallet
After confirming your purchase, your Land NFT should appear in your wallet within the next few minutes. If you are using a Metamask wallet, you can connect it to the OpenSea platform to view your land. We advise you to transfer and store your NFT in a secure, if possible, hardware wallet.
What makes a virtual land valuable?
Now, that you know how to buy a piece of land in the metaverse, let’s go through some factors that can influence the value of your purchase.
- The location: Similar to the physical world, lands in certain prime locations have a higher value than the lands on the outskirts of town. Also, lands located near certain metaverse infrastructure or resources are typically more valuable.
- Size: In real estate, size does matter. With a larger plot of virtual land, you can build more and create more experiences. This makes a larger plot of land more valuable than a smaller plot.
- The popularity of the project. As the community and userbase of a metaverse project grow, there could be an increase in demand for the lands.
- Scarcity: Lands in the metaverse are finite and capped at a certain amount. This mechanism drives up the value of the lands as the demand increases.
To wrap this up, buying land in the metaverse is akin to making any cryptocurrency investment. Be sure to follow the best practices. Always use the official project link to make a purchase or choose a reputable third-party marketplace like Opensea.